South Dakota transfers funds South Dakota state government ended its fiscal year on June 30 by transferring $14.8 million from reserves to balance the budget.
"The $14.8 million shortfall was partly due to revenue collections coming in nearly $1 million less than what we forecasted in March," said Jason Dilges, state Bureau of Finance and Management. "However, we were pleased this shortfall was lessened because our state agencies cut back spending by nearly $1.9 million."
The state's revenue is generally comprised of tax collections as well as the one-time use of reserves or the transfer of funds from one area of state government to another.
In FY2004, more than $40 million of the $891.7 million
total state general fund receipts came from one-time revenue sources; meaning funds were transferred from other areas on a one-time basis to fill the shortfall.
Collections from the sales and use tax, the state's largest revenue source, amounted to over $508 million in fiscal year 2004, accounting for 60 percent of ongoing general fund receipts.
"I am pleased we are continuing to reduce our structural deficit in South Dakota," said Gov. Mike Rounds. "The structural deficit was created when the state lost revenue from the inheritance tax repeal in 2001, and due to a national recession. We will continue to work to eliminate this deficit during the next few years, while providing essential services to our citizens without raising taxes."